Board Positions Research Articles

The Effect of Family Ownership on the Relationship between Busy Directors and Stock Price Crash Risk for Listed Firms on the Indonesia Stock Exchange

This study explores the impact of busy directors on the stock price crash risk if an individual holds three or more board positions. Since Indonesia has adopted a two-tier system, directors refer to Commissioners. Most of the literature suggests that the main risk factor for stock price crashes arises from the tendency of management to withhold adverse news from investors regarding compensation contracts and career issues. This research aims to verify whether busy directors help to limit managerial opportunistic behavior. Results show that multiple positions bring no effect on the stock price crashes risk due to cross over interaction which negated the substantial effect on the risk of stock price crashes. As a country with high family ownership concentration, the results illustrate that family firms in Indonesia will strengthen the influence of Commissioners who hold multiple positions in reducing stock price crashes risk. This investigation uses a sample of companies listed in the Indonesia Stock Exchange over the period between 2014 and 2019. The generalized method of moment (GMM estimator) is used as a research method to reduce endogeneity problems. DOI: https://doi.org/10.26905/jkdp.v25i1.4909

Money Moves the Mare: The Response of Community-Based Organizations to Health Care's Embrace of Social Determinants.

Recent health policies incentivize health care providers to collaborate with community-based organizations (CBOs), such as food pantries and homeless shelters, to address patients' social determinants of health (SDOH). The perspectives of health care leaders on these policy changes have been studied, but the perspectives of CBO managers have not. Our research question was: How are CBOs in Massachusetts perceiving and responding to new Medicaid policies that encourage collaboration between health care organizations and CBOs? We interviewed 46 people in leadership positions at CBOs in Massachusetts for approximately an hour each. We analyzed these data abductively, meaning that we iterated between inductively coding transcripts and consulting existing theories and frameworks. We found evidence of a knowing-doing gap among CBOs. Even though CBOs value their distinctiveness and autonomy from health care, they have undertaken a series of organizational changes in response to the new Medicaid policy that make their organizations appear more like health care organizations. These changes include adopting new performance metrics, hiring clinical staff to the board and senior management positions, and using medical language to describe nonmedical work. Drawing on institutional theory, we suggest that the nonprofits undertake such changes in an effort to demonstrate legitimacy to health care organizations, who may be able to provide new sources of critically needed revenue. Massachusetts CBOs perceive health systems as potential sources of revenue, due in part to an ongoing Medicaid redesign that encourages the integration of health and social services. This perception is driving CBOs to appear more like health care organizations, but the impacts of these changes on welfare remain unknown.

Таборова «жива» газета «Промінь» як джерело для реконструкції особливостей життя і повсякдення інтернованих вояків армії УНР у Стшалково, Польща (перша половина1922 р.)

The article analyzes the source potential of the materials of the camp «living» newspaper «Ray», which was issued by interned Ukrainian soldiers first in the Lancut camp (Poland), and from the very beginning of its withdrawal it won the favour of the vast majority of the campers. After their relocation to Strzalkovo, the magazine continued its life in the old format – when the editorial board prepared 2-3 copies of «Ray» (typing them), after which his materials were distributed weekly in the camp by saying them to the generally interned from the stage of the camp theatre. Thanks to this practice, the magazine has become an integral part, and campers have been looking forward to its next issues – to hear a lively and sharp Ukrainian word, which branded various negative aspects of the camp's everyday life. At the same time, its editors faced many difficulties in preparing almost every issue of the magazine, which were due to the banning of some of its materials by censorship, and the reluctance of individual campers to become the target of sharp satirical notes. At the same time, the command of a group of interned troops understood the usefulness of such a publication to maintain the morale of the military. The camp newspaper «Ray» became a real chronicler of the camp, because the materials published in its columns contained a significant amount of information about the life and everyday life of interned Ukrainian soldiers in Strzalkovo. Most of these materials were placed in the section «Camp life», and their study allows you to get valuable facts about the peculiarities of the life of campers, their main occupations and leisure. At the same time, the newspaper published critical articles that touched on many acute issues, including on the unwillingness of some officers of the Army Ukrainian People's Republic to use the Ukrainian language at work and in everyday communication, official and extra-official relations of officers and Cossacks, unworthy behaviour of certain employees of the camp commandant's office. Throughout its publication, the newspaper has had a powerful influence on the process of forming the worldview of campers, encouraging them to participate in fundraising for various important social needs. This position of the editorial board of the magazine provided him with moral support from the majority of the interned army, for which the publication of each issue of the newspaper became an event in the gloomy camp life. Despite all the difficulties of camp isolation, the editorial board found opportunities to obtain news and socially significant information and publish it on the pages of «Ray». By publishing materials about the sanctity and invincibility of the Ukrainian liberation struggle, the newspaper always stood in defence of the national-state ideals of the Ukrainian People's Republic.

Revisiting the Algowrongs of International Arbitration: The Duty of Neutrality and the Centrality of Consent

Keynote Address to the National Bar Association Virtual International Summit. May 12-14, 2021Forging A Path Forward: Connecting the Diaspora to Attack Global PandemicsCOVID/Police Brutality/Voter Suppression/Structural Impediments to DevelopmentWhen I was contacted by President C.K. Hoffler to do this keynote last Wednesday, before she had started I said yes to the boss-woman. We have known each other since she was 6 years old as students together at College du Leman near Geneva, Switzerland. I have been overjoyed to watch her rise on her path.I was so pleased to listen to her bilingual French and English welcome for this summit as to those who spoke one of those languages they were made to think of what was said in the other language and for those like me who speak both, we were able to hear the beauty of her words in her voice done with perfection in both languages. As a person who lived in Paris for 17 years and had my accent raise curiosity when I first got there, I did hear only slightly the Geneva accent that our French shares!Thank you C.K.I have seen that over these days the NBA has addressed and tried to tackle the difficult issues that confront us in a seamless manner that goes from domestic to international and back again while looking to the future. In this keynote, I will attempt to hopefully assist this important effort at dialogue to help humanity progress.Let me start by saying that while I am appalled by the lack of diversity in the international arbitration game, I have no interest in being an arbitrator, a counsel, an expert, an amicus, a part of some effort to draft something, a shareholder in an international arbitration data research firm, an association with any investment or hedge fund group that is investing in international arbitration including, but not limited to, third party funders, any advisory board or leadership position of any international arbitration non-profit, and on and on. If there is something I missed, please note that I am not interested in that. For in academia until my retirement and afterward I enjoy talking about the field.I will not have enough time in these fifteen minutes to go over all the matters which I would like to discuss, but a copy of this will be posted at ssrn.com in due course so you can read my thoughts and give me comments at your leisure.

Does More Effective Director Monitoring Make Management Guidance More Credible?

Evidence of the impact of governance on disclosure credibility is inconclusive. Based on a large, post-Regulation Fair Disclosure (Reg-FD) sample, we find that increased director monitoring – through increased director independence and director attention – is associated with more credible management guidance, as evidenced by stronger analyst reactions to the news in management guidance. We document additional cross-sectional differences in the monitoring/credibility link, consistent with monitoring being particularly impactful when the role of external verification is largest (good news forecasts, low analyst following). We are able to identify causal effects through exogenous shocks to monitoring associated with (1) director deaths, (2) mandated independence required by Sarbanes-Oxley (SOX), and (3) changes in director attention due to M&A activities that eliminate board positions at other firms. This finding does not appear to be due to a link between effective monitoring and more accurate guidance, as the stronger analyst reactions occur only when guidance is less accurate. Overall, our findings provide strong support for director monitoring influencing the perceived credibility of management forecasts, especially in settings where external validation is needed.

Gendering of recruitment and selection processes to boards in Polish sports federations

ABSTRACT Poland has achieved the lowest result (9%) of all surveyed European countries regarding the proportion of women holding senior positions in national sports federations. The unchanging under-representation of women in executive boards confirms the need to analyse factors maintaining gender inequality in Polish sports federations. 24 individual in-depth interviews were conducted with persons occupying leadership positions in order to explore the recruitment and selection process for board members in Polish sports federations. The results show significant discrepancies between women and men in terms of perceiving barriers preventing existence of more diverse and gender-balanced boards. Women indicated that the selection policy significantly reduced women’s possibilities to hold positions in boards. The selection is preceded by appointing candidates by members of federations. Lack of trust towards women in sport and old boys’ network are the causes of not nominating them, according to the female respondents. The studied male respondents did not agree with these opinions. They pointed out lack of willingness and proper commitment that results in women not being elected. They did not identify gender as a significant feature in the functioning of an organisation. The research indicates the need to make the leaders of sports organisations more aware of the gendered structure of sports organisations as well as the need to deepen a discussion about the recruitment and selection policy for board members in sports organisations. Although the choice following of the then nominated candidates seems to be democratic, it can distort the chances of women.

Grab–Uber merger in Southeast Asia: the Singapore approach

The Competition and Consumer Commission of Singapore (CCCS) issued an infringement decision in October 2018 after finding that the sale of Uber’s Southeast Asian business to Grab for a 27.5 per cent stake in Grab was in breach of the Competition Act (the ‘Act’).1 The CCCS found that the transaction resulted in a substantial lessening of competition in the provision of ride-hailing platform services in Singapore in breach of section 54 of the Act. A financial penalty of $6,582,055 was imposed on Uber, and a financial penalty of $6,419,647 was imposed on Grab. Other Directions were made. This was the first time that the CCCS had investigated and penalized an unnotified merger (although notification is not compulsory). This followed the imposition of earlier Interim Measures Directions (IMDs) aimed at lessening the impact of the transaction on drivers and riders, while the investigation continued following the failure of the parties to notify the CCCS prior to completion. The published decision contains a detailed analysis of the merger and its surrounding circumstances under the Act. It is heavily redacted in parts to maintain commercial confidentiality, so some of the commercial issues are more difficult to assess. Nevertheless, the CCCS took a particularly strong position in rejecting the arguments of the parties and ultimately imposed the financial penalties and extensive Directions to redress the anticompetitive outcomes arising from the merger which had been completed. The transaction allowed Uber to exit the jurisdiction and the region but left it with a significant shareholding in Grab and a board position in that company. This has been a pattern of behaviour for Uber in earlier transactions, which raises some issues about the true nature and impact of the transactions on competition in the region.

Nonprofit Board Membership and the Gender Gap

According to a study conducted by BoardSource and reported in, Leading with Intent: 2017 National Index of Nonprofit Board Practices (Board-Source, 2017), 72% of nonprofit CEO/Executive Director positions are held by females, while only 48% are Executive Board Members and 42% are Board Chairs. The discrepancy between the number of board positions held by women versus staff leadership positions has been the subject of many recent publications. Reviewing academic and industry literature, this paper explores the relationship between an allmale board’s choice of self-assessment tools and its decision-making processes related to creating a gender inclusive board. This paper provides additional insight by applying communication theoretical frameworks to analyze allmale board decision-making processes which ultimately affect recruitment outcomes.

Nonprofit Board Membership and the Gender Gap

According to a study conducted by BoardSource and reported in, Leading with Intent: 2017 National Index of Nonprofit Board Practices (Board-Source, 2017), 72% of nonprofit CEO/Executive Director positions are held by females, while only 48% are Executive Board Members and 42% are Board Chairs. The discrepancy between the number of board positions held by women versus staff leadership positions has been the subject of many recent publications. Reviewing academic and industry literature, this paper explores the relationship between an allmale board’s choice of self-assessment tools and its decision-making processes related to creating a gender inclusive board. This paper provides additional insight by applying communication theoretical frameworks to analyze allmale board decision-making processes which ultimately affect recruitment outcomes.

World News.

World News.

The Big Three and Board Gender Diversity: The Effectiveness of Shareholder Voice

In 2017, “The Big Three” institutional investors launched campaigns to increase gender diversity on corporate boards. We estimate that their campaigns led firms to add at least 2.5 times as many female directors in 2019 as they had in 2016, accounting for most of the increase in board gender diversity over that period. Firms increased diversity by looking beyond managers’ existing networks to identify candidates and by placing less emphasis on candidates’ executive experience. Firms also promoted more female directors to key board positions, indicating firms’ responses went beyond mere tokenism. Our results highlight index investors’ ability to effectuate broad-based governance changes and shareholder advocacy’s potential to expand women’s participation in corporate leadership more extensively than government mandates.

Audit committee effectiveness and non-audit service fees: Evidence from UK family firms

This study examines whether the presence of an ineffective audit committee at family and non-family firms can influence the firms’ non-audit service purchases from the incumbent auditor. Using a sample of 1736 observations of UK-listed companies from 2005 to 2013, we find a significant positive association between ineffective audit committees and non-audit service fees. This association is more pronounced for family than for non-family firms, suggesting that in the UK, family firms with ineffective audit committees tend to buy more non-audit services from their incumbent auditors than non-family firms. The results also show that family firms with ineffective audit committees pay higher non-audit service fees when their family members own shares or hold board positions, indicating that both types of involvement lead to larger non-audit service expenditures.

How many Instances in the Polish Administrative Procedure? Analysis of Normative Solutions in the Aspect of Procedures for Reviewing Decisions Issued by the Executive Bodies of Local Self-government

Pursuant to the art. 78 of the Constitution of the Republic of Poland each party has the right to appeal against judgments and decisions issued in the first instance. The Constitution also stipulates that administrative courts control the activity of administration in at least two-tier proceedings. Pursuant to the above, in Poland, decisions are issued in two-tier general administrative proceedings and may be subject to review in two-tier court administrative proceedings. The number and structure of procedures of appeal against administrative decisions have been a subject of discussion for years. Criticism of the current solution comes, among others, from local self-government representatives whose bodies issue the largest number of decisions in Poland. These issues have recently become even more relevant due to statutory obligation of reviewing Polish legislation in terms of legitimacy of reducing the number of administrative instances. The subject of the study is an analysis of possibility and purposefulness of limiting the number of instances in the administrative procedure, conducted on the example of a procedure for reviewing decisions of local self-government bodies. The reflection was made taking into account systemic and procedural position of Self-Government Boards of Appeal.

Suicide in the Time of COVID-19: Review and Recommendations

The coronavirus (COVID-19) pandemic presents us with unusual challenges to the global health system and economics. The pandemic may not have an immediate impact on suicide rates, however, given that it is likely to result in a confluence of risk factors for suicide and economic crisis, it is highly possibly that it will lead to increases in suicide rates in the long-run. Elderly persons are more likely to live alone, be socially isolated during COVID-19 and have physical health problems, which are risk factors for suicide. Young children and health professionals may also be population at risk. Isolation, quarantine and the economic crisis that follows may impact mental health significantly. The International Academy of Suicide Research (IASR) is an organization dedicated to promote high standards of research and scholarship in the field of suicidal behaviour to support efforts to prevent suicide globally. This IASR’s board position paper gives recommendations for suicide research during the COVID-10 pandemic. Clinical research has to be modified due to COVID-19 shutdown.

Does the supervisory ability of internal audit executives affect the occurrence of corporate fraud? Evidence from small and medium-sized listed enterprises in China

PurposeInternal audit executives instruct the internal audit department to supervise corporate business management activities, evaluate internal controls and risks and provide recommendations for operating. Therefore, this paper aims to confirm whether and how the supervisory ability of the chief internal audit executive enhances the internal audit department’s function to prevent corporate fraud. Based on the results, this paper further researches the role of the supervisory board position in this relationship.Design/methodology/approachThis paper examines 922 small and medium-sized listed enterprises in China from 2010 to 2017 and empirically investigates the influence of the internal audit executive’s supervisory ability (IAESA) on the occurrence of corporate fraud.FindingsThe results reveal that the IAESA is significantly negatively correlated with the occurrence of corporate fraud. This suppression effect is more pronounced when the internal audit executive is also the company’s supervisor. However, if the internal audit executive is the chairman of the board of supervisors, the suppression effect no longer exists. This paper therefore confirms that the IAESA curbs corporate fraud via the improvement of the internal corporate control level.Research limitations/implicationsBecause the sample data was limited by the information disclosure level of the included companies, the sample size was relatively small as compared with those of other studies.Practical implicationsThis study not only expands the research perspective in the field of internal audit functions but also provides a decision-making reference for the prevention of corporate fraud.Social implicationsThis paper extends an approach that might be able to curb corporate fraud.Originality/valueA comprehensive index was developed using data envelope analysis to quantify the supervisory ability of internal audit executives. Based on this, this research confirms that the internal audit department performs a “firewall function” to prevent corporate fraud.

Affirmative action programs and network benefits in the number of board positions.

Whereas governments are increasingly considering affirmative action programs to increase corporate board diversity, the effect of such programs can be superficial as they do not address the underlying problem, which is women’s access to and inclusion in relevant corporate networks. To address this issue, we study the relationship among affirmative action programs (binding gender quotas and non-binding gender targets), director networks, and the number of board positions individual directors hold given their gender. We use personal, professional, and network characteristics of 25,127 unique directors from 2,435 public firms in 32 European countries over the period of 2000 through 2017. We find that in the absence of affirmative action programs, women directors benefit less from their networks than men directors suggesting the existence of a gender gap in network benefits. After the passage of binding gender quotas, this gender gap in network benefits narrows between women and men directors. Overall, this research suggests that binding gender quotas make director networks a more salient tool for hiring women and may help in leveling the playing field in the way these networks are used for achieving top management positions.

When Tokens Matter: A Critical Perspective on Tokenism and Women on Corporate Boards

This essay critiques the existing understanding of the concepts of tokens and tokenism within the particular context of women on corporate boards. We argue that existing tokenism scholarship adopts a reductive logic that equates tokens with tokenism and assumes numerical underrepresentation of women as an implied signal of lack of power, thereby failing to fully reflect the latent power of tokens as potential agents of both personal and inter-group change. Integrating perspectives from socio-psychological theories namely, social categorization, social identity and social integration, we argue that, after appointment, the effectiveness of a woman token’s station on a corporate board ought to be qualitatively evaluated in terms of her social categorization and the extent of her social identification with the non-dominant gender group, and her ex post facto social integration into dominant peer group. We propose a layered token theory defining four categories of tokens, (1) the marginalized token; (2) the passive token; (3) the queen bee token; and (4) the changemaker token. These theorized categories capture how women board members differentially navigate group dynamics within the collective, once a board position is taken up consequently affecting tokenism on corporate boards. Our essay has relevance for gender discourse and management research.

How Do Firms Respond to Board Political Capital Loss?

Politically connected firms may rely primarily on political capital to compete, but a sudden, irrevocable loss of such capital poses a critical challenge for focal firms and prompts them to explore new strategies to compensate for this loss. Drawing upon resource dependence logic and nonmarket strategy literature, we examine how firms tackle this challenge by focusing on two types of strategic reactions: activities to nurture market-based capabilities – R&D investment, and activities to develop alternative channels with socio-political actors – bribery. We predict focal firms to substantially increase their R&D and bribery expenditures after a negative shock. This prediction in confirmed in a sample of Chinese public corporations in the 2010s, during which the focal companies experienced an exogenous shock from the central government requiring independent directors with recent government background to resign from their current board positions. These increases are found more salient in firms whose board chairs and CEOs lack political capital. Moreover, organizational slack and institutional environment lead to different patterns of strategic adjustments: While firms with more organizational slack and located in a better institutional environment prefer more R&D investment post shock, those with less slack and in a weaker environment opt for more bribery activities. Our study contributes to governance and strategy literatures by demonstrating how firms may react to unexpected weakening/loss of social and political capital at the board level and beyond.

Gender and Invited Authorship in the Journal of Pediatric Urology

ObjectiveTo evaluate the evolving role of gender in invited authorship and editorial positions in the Journal of Pediatric Urology. Materials and MethodsWe recorded editorial board members and first and senior authors for all editorials and invited commentaries for all issues of the Journal of Pediatric Urology from 2005 to August 2018. We also recorded first and senior authors for original research articles from selected years for comparison. Gender was confirmed for each individual by visiting institutional websites and performing internet searches. The same was done for the Societies for Pediatric Urology membership. ResultsA total of 143 editorials and 162 invited commentaries were identified within the study period, with numbers increasing each year. Overall, these publications had 448 first and senior authorships, of which 10% were female. Of the 898 editorial board positions over the study period, 7% were held by females. The proportion of female authorships increased over time (P = .04), while the proportion of female board members did not (P = .9). ConclusionsFemale invited authorship has increased over the past 13 years in the Journal of Pediatric Urology. However, editorial board membership has lagged, indicating an opportunity for improvement.

The influence of board experience on firm performance: does the director’s role matter?

This paper examines how company board characteristics (directors’ quoted boards to date, quoted boards currently, board tenure and age) influence firm performance in a sample of Spanish listed companies for the period 2005–2015. Among the main contributions of the paper are that it analyses the boards of companies operating under a Continental, as opposed to Anglo-American, governance system characterized by high ownership concentration and low investor protection, and that it differentiates between inside and outside board members based on the role each type plays on the board. The results reveal differences between inside and outside board members in terms of the performance impact of some board characteristics. Thus, while for inside directors age has no significant effect on firm performance, for outsiders it has a negative one. Similarly, longer tenure on the board is associated with higher performance levels just in the case of outsiders, whereas we find a positive influence of directors’ number of current board positions for insiders; finally, we do not find any evidence concerning the influence of board positions to date on performance for any of them.